INTRODUCTION During the late summer of 2007, Bob Malone, British Petroleum (BP) America Chairman and President, was faced with one of the most important decisions of his career – to expand the Whiting Refinery in northwest Indiana on the banks of Lake Michigan, or to yield to pressure from the public and not expand operations. Regional and global consumer demand for gasoline was rising, which helped push prices toward record highs, and the refinery had an opportunity to expand capacity to help meet that demand. However, thousands of citizens, a host of environmental groups, and even national politicians were opposed to the expansion for fear of increasing pollution in LakeMichigan. Malone believed his company followed the letter of the law when BP received regulatory approval to proceed as planned. However, public opposition to the expansion was fiercer than expected and BP’s environmental image, which the company highlyvalued, came under sharp criticism. As Chairman of BP America, Bob Malone wasresponsible for ensuring that the company achieved high levels of financial performancewhile meeting “the growing demand for sustainable, environmentally responsibleenergy”1. In light of this, Bob Malone was faced with one of the most importantdecisions of his career: proceed as planned, yield to public pressure, or some other courseof action.
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